G.R. No. L-31890




Republic of the Philippines SUPREME COURT Manila SECOND DIVISION G.R. No. L-31890 May 29, 1987 PEOPLE'S HOMESITE AND HOUSING CORPORATION, petitioner, vs. COURT OF INDUSTRIAL RELATIONS, FELICIDAD ALICE, BERGIDA APOSTLE, LUZ ALCORAN, SOLICIDAD ANDRADE, AUREA ABAS, GENEROSA ABONGAN, MACARIA ABERION, ARCADIA ABAJAC, ANTONIA ARNIBAL, PACENCIA ACODESIN, ESPERANZA ALVAREZ, DEMETRIA ALVAREZ, JUSTINA AQUINO, TRINIDAD AGUIRRE, FRANCIA ABOGADO, CRETALINA AUDENCIAL, NAZARIA ANTARAN, LELIA AGUIRRE, OLIMPIA ADONES, ELPIDIA AMOR, IREANA ANDA, ADIA ABDOL, FLORA AMOLINO, RICARDO ALBA, CANOTO ARGUELLES, FEDERICO AQUINO, RODOLFO AUDENCIAL, TEOFILO ABAWAG, LORENZO ALMORPE, DENETRIO AMITA, JULIAN ADAR, EFREN ANCHETA, ENIEGO ASPA, HENRY ABONG, GABRIEL ABALOS, GENEROSO AMARA JR., FRANCISCO ANSELMO, DOMINGO ALVAREZ, LEONARDO AGBAY, FRANCISCO AREDENCIAL, MACARIA ABERIO, LEONILA ARAGON, FLORENCIO ABELLA, FAUSTINA ARGUELLES, MAXIMA BALLOS, ANGELINA BONDOC, ADELA BAUTISTA, LEA BAUTISTA, TERESITA BENITEZ, BENEDICTA BALINO, VICTORIA BALUYA, VIOLETA BANANA, FELISA BOSE, FELISA BALDONADA, CORAZON BAUTISTA, ANTONIA BACQUIAL, PLACIDA BADAL, NENITA BELARMINO, MAXIMA BATOGAN, LEONORA BURGOS, AMADA BERTOS, SOCORRO BENJAMIN, VIRGINIA BALUYA, MARCELA BATASLAC, LORENZO BARTOLOME, ORLANDO LOITA, PAQUITO BALDONADO, RAMOS BENIDO, ODAINO BALDOMER, SATURNINO BALIBALOS, DIONISIO BALDONADO, ROLANDO BON, CRISANTO BORBON, ANASTACIO BOLANTE, MERCEDES BUEN, ASUNCION BACONAWA, CELSO BADOL, RODOLFO BAYRON, VICTORIA CABOBOY, CLEMENTINA CAPUNGCOL, BONIFACIA CABOBOY, GLORIA CABRALES, VICTORIA CARILLO, FLORENTINA CONDE, MARCIANA CABUGAYAN, VEROMINCA CENON, FLORA CASTILLO, ASUZENA COQUIA, ENES CATAYONG, CARMELITA CONDES, ADELA GACHARO, SEMIONA COTEJAR, DIOSDADA CADORNA, REMEDIOS CATALAN, MARIA CHUA, VIRGINIA CAJEPE, ROSITA CANGAS, ADORACION CALMANTE, MARIVIC CHAVEZ, ENECITO CAPALARAN, RICARDO COLLADO, VIRGILIO CAJEPE, ISIDRO COBER, MARCELINO CATARA, ANECITO COMPIO, NECASIO CAPUNGGOL, MAXIMO CANALES, CRESENCIO CASAUL, DOMINADOR CASAUL, CALIXTO CARDOVA, BERNARDO CASIGURAN, JUANITO CAZATE, GIL CORDOVA, ROQUE CONDE, JR., TONY CRUZ, ERNESTO CAPIZ, ERNESTO CANIZA, DOMINADOR COQUIA, ELPIDIO CANONIGO, ISIDRO CASTILLO, DOMINADOR CASTRO, ANDRES CARETO, VALENTINA CORDERO, BOY CINEZA, ZENAIDA DIZON, AURORA DAEP, EUNES DE DIOS, PAULINA DE PAZ, MILAGROS DEMATERA, LORNA DURAN, GIMINE DE LA CRUZ, LOURDES DELANTAR, JUANITA DAZO, CRISTITA DERPO, MONSUERTA DALISAY, TERESE DE LOS SANTOS, MARTA DELFIN, REMEDIOS DELA ROSA, CONCEPCION DEL MONTE, LOURDES DELA CRUZ, DOMINADOR DELA CRUZ, MARIA DE VERA, GREGORIA DIOLA, SILVINA DE VERA, FLORENTINA DELA CRUZ, ELADIA DALMACIO, FLORENTINA DAVID, REYMUNDO DE VERA, ELPIDIO DIACLES, RICARDO DELA CRUZ, CERILO DADO, JERMINIAS DOBLE, DELFIN DIACLES, LAURA DE LEON, JESUS DE VERA, MAXIMO DIOCSON, CESAR DE JESUS, MIGUEL DE GUZMAN, PRUDENCIO DUCABO, TOMAS DESABELLE, ILUMINADO DE VERA, NARCISO DANTES, MARGARITA DE GUZMAN, REBECCA DECORO, JESUS DE LA TORRE, FILOMENA ENCENARES, GREGORIA ESPALGO, SALVACION ESCOLIN, MAGDALENA EVANGELISTA, ROBERTO ENCENARES, ENRICO ELLEN, ELBERTO ESPATERO, SEMEON ESPERAME, SEMEON IGNACIO, ABRAHAM ESPERITO, ALFONSO EVASCO DOROTEO ELIYAY, TERESITA EUGENIO, JOSE ENRIQUEZ, FORTUNATA FURNES, JACINTA FLORES, NORMA FRANCISCO, CARLITO FERNANDEZ, REYMUNDO FONTANILLA, SANTIAGO FEGOROA, NAPOLEON FERNANDEZ, CRESTETA GOTEB, LEONCIA GARCIA, AQUILINA GLORIOSO, ROBERTA GABRINO, JULIANA GAGALANG, ANTONINA GALLETES, NELLY GELOGO CORAZON, GILDOC ENCARNACION, GOJE CRUZ, ROBERTO GALLARDO, LUCIO GONZALES, TARCILA GONZAGA, ROSALINA GARCIA, VICTORIO GUBAT, CARLITO GADORES, MARCELINO GREFIEL, CRISTINA HAWAC, JOSEFA IGLESIA, FELOMINA ISIDRO, ELENITA INVETADO, ALICIA JAIME, RAFAEL JAIME, DOMINGO JADOC, JESUS JINAYON, ELEUTERIO JADOC ,ANTERO JAMERO, CONSTANCIA LERIOS, SAMUEL LERIOS, VICENTE LERIOS, PRICELA LAGIJNSAD, CELERINA LACHEGA, FILOMENA LECHAUCO, EULALIA LEON, ASUNCION LESABA, EXALTACION LUBA, NATIVIDAD LOTO, SEVERA LEPATA, MARCIANA LOGARTO, CARIDAD LANIOHAN, FELISA LABRADOR, ALBERTO LARENIO, DANILO LABRADOR, FE TRAQUINA, NATIVIDAD LOLA, RICARDO LEGASPI, ASUNCION MAGBUHOS, MAXIMA MOSCARE, MEDELINA KANDAL, LEONILA MERGAL,SILVERIA MESIAS, LOURDES MURILLO, NATIVIDAD MANIANO SOLIDAD, MELLANA, FELISIDAD MENDOZA, FRANCISCO MONTILLA, CORNELIO MONTILLA, VICTORIA MALO, MARCIANA MEJENIO, ESTELITA MISLOS, SUSANA MAGAYONES, CORAZON MEITALPIS, RODORA MANUEL, VIRGINIA MENDOZA, ERLINDA MORALES, TERESITA MENDOZA, CERELINA MINERVA, CONSOLACION MALLIO, GODOFREDO IABUHAY, PERFECTO MARTINEZ, VICENTE MARAVILLA, MANUEL MARAVILLA, ARTURO MERGAL, SEGUNDO MERLAPIS, VICTOR MENDEZ, RODOLFO MIRANDA, GENEROSO MACALLA, FLORENDO MEDELO, JAIME MANALAC, OLIMPIO MONTILLA, ESTEBAN MENDIOLA, ANTONIO MENDOZA, RAMON MARALIT, DOMINGO MARQUEZ, ENGRACIA MOLATO, VICTORIA MARALIT, INCINCIA MONTECLARO, WILLIE MURCIA, LEONARDO MARIANO, AMELIA NABUA, AMELIA NATIVIDAD, FILOMENA NOVILLA, EFIPANIA NOTARTE, ROLANDO NATALIO, LEONARDO NABUA, VICTORIANO NAVAJAS, FLORENTINO NAVARETTE, FEDERICO NOBLE, CARMELITA OMEGA, ANDREA OBIEN, FARESTA OLAS, ARCADIA OMEGA, VICENTE OQRIENDO, MATEO ORTEGA, CARMEN PARANAS, SOLEDAD PALOMARES, FELICIDAD PENAFLOR, CERIACA PREMARIYAS, LADISLAO PERALTA, LUCRECIO PECORRO, FRANCISCO PLAZA, ROBERTO PANGANOS, GONZALO PORE, CALIXTO PAGARA, PAREDES PASCUAL, RAUL PACADAR, ANICETO PACADOR, GUADALUPE PEREZ, RODRIGO, PANGANOD, CRISANTO PRINCIPE, JUANITO PEGULAYAN, GALICANO QUIJADA, BARTOLOME QUIJADA, JULILIE QUIZON, PEREMIA RESULTA, SEGUNDINA REDONIA, JUANITA REGODOS, WAHINE ROLON, SERVIDAD ROSA, RUFINA RECARTE, SUZANA REYNA, ANACORETA REFORZADA, MARTE RANELLE, RODRIGO ROMA, ANTONIO ROCE MACARIO REYES, ANTONIO RIVERA, HONORIO ROMAMALE, MARCELINO REBOSO, MARIANITO RUMITMAN, CIPRIANO REGAJAL, JOSE ROBESENCIO, JOSE SYCHANCO, ROSITA SANTOS, PELAGIA SANTOS, MIGUELA SINGSON, JUANA SIMANES, LUX SUAREZ, LEONARDO SALVADO, DEMETRIA SILVERIANO, DOMINGA SALAZAR, EXELSA SAIMOREN, MARTA SAN ANDRES, MARINA SALCEDO, OFELIA SANCHEZ, MARIA SEMON, LUZ SUMAYA, LOURDES SERRANO, YASOL SOSTENES, BENJAMIN SAIMORIN, FILES SALVADO, EDGARDO SALVADO, SOZIMO SALARDA, MARCELINO SATOL, RICARDO SETOSIA, ANTONIO SAN JUAN, JACINTO SORIANO, LEONILA SELFA, AMPARO SAN JUAN, AMADO SANTOS, GONZALO SALVO, REYNALDO SIMBOLAN, MARTIN SAMSON, ZOSIMA TABONARES, SALVADORA TABULOG, LEOCADIA TARCE, INCENCIA TIBOS, ADORACION TUGBE, EMERGENCIA TIBOS, ULDARICA TANGOG, GLORIA TARQUATOR, ROSA TORRES, ANGEL TALAGAY, MANOLITO TEVES, MEGUEL TALVO, BASILIO TOBIAS, RAMON TURQUATOR, PACIFICO TALA, ISAGANI TESORO, DONATO TRELIPAT, FEDERICO TIPANAO, ROLANDO TALBO, MIGUEL TESORO, ROLANDO TIPANAO, ROBERTO TUPAS, VICTORIA TIBOS, EUFRACIO TUBIAS, SOLIDAD URSULA, ROSENDA VELLAREAL, ANASTACIA VILLANUEVA, TERESE VELLERUZ, PELLAR VILLEGAS, AURELIA VILLAVER, ESTELITA VILLAFRANCIA, FELIPA VELASQUEZ, GENEROSA VILLENA, GORGONIA VERSOSA, SATURNINO VARONA, ROLANDO VILLANUEVA, CRISENCIA YAP, CECILIA YUMAG, AGAPITA VENTOROSA, SOLIDAD ALBERTO, FE BANANA, REYNALDO CONDE, FE DELA CRUZ, SEVERA DOMINGUEZ, JOSEF DONATO, JOVITA EBANEZ DOLORES ENRIQUEZ, MARCELA ESTOPEREZ, SALVACION FEGUROA, FLORANTE GUMATAY, EUDECIA JATICO, GUILLERMA LAGUNSAD, TITA LADO, SALVACION MAQUIRANG, JUANITA MUTANEZ, MEDINA NABUA, NINETA PUNDIDO, DIONISIO PARANAS, ROSA ROMAGAS, BENEDICTO NAAGAS, PRIMITIVA ABAS, ROSA ABELLOS, EDIZA ABADILLOS, JUANITA ABARECIO, ESTELITA ABRILLO, GREGORIA ABADE, PROSERFINA ALBANO, FERNANDO ACAL, CRESTETA ADONA, AGAPITA ANPON, SULFECIA ARES, ESPERANZA ACRIESCADO, BELINA ALCANTARA, SUZANA ARENSOL, DEMETRIA ANTONIO, FELOMINA AGANA, WILFREDO ANDICOY, JOSE ALBA, BETY ARCELI, VALERIANA ABADIANO, ALBERT BANDOY, GREGORIA BANDOY, CLEOTILDE BAAFDE, BABIANA BANGA, RICARDO BAARDE, HERMOGENES BOCO, GREGORIO BAYAN, PABLO BATAN, MARTINA BARTIDO, ROSARIO BAYADOG, T T MANUEL BOTE, ROSALIA BULACAN, GUADALUPE BALALA, NORMA BAUMUNDO, ERLINDA BUEZA, WILFREDO BALALA, RODOLFO BALITACION, VIRGILIO BANES, AGUINALDO BERSAMINA, NENITA BANADO, LEONIDES BACLO, LEONILA BENAVEDEZ, EVANGELINA BEROL, LUCIANA BONQUA, MARCELINO BUEZA, RICARDO BALTAR, TRINIDAD BELMONTE, ADELAIDA BAUTISTA, LUIS CABALLERO, SALVADOR CABALES, PACIENSIA CAMELON, MELANIA CABALE, FELISA CABALE, TERESITA CASINGAL, CESARIA CALASTE, ANTONIO CAMARA, JOSE DELA CRUZ, NATIVIDAD CAMA, FELISIDAD CANBO, FELIO COLASTE, FLORENTINO CRUZ, ONASIMA COLLANTES, IRIBERTA CANTEL, MELCHOR CEBRIANO, OFELIZ CEPRIANO, DAMIANA DOMINGUEZ, ROSALINA DIZON, FLORENCIA DOBLE, DIONICIA DULA, VIOLETA DOMINGO, PILAR DOMINGO, RAMON DEMASUNID, PACENCIA DECOTON, MARCELINO DIEGO, JR., VICTOR DOMINGO, RICARDO DOMINGO, JUANITO ESTEBAN, ADORACION ESPINA, WILFREDO ESPINA, DIOMICIA ENERES, ROMEO ESPINA, JUANITA ESTIPONA, LEONA ELAYA, BENITO ELPA, ADILA FRANCISCO, BEATRIZ FLORES, NENITA FELIZARDO, EMILIO FERNANDO, MARGARITA FLORES, MAGDALENA DE GUZMAN, LOLITA GABOSA, CONDEDA GABON, LOLITA GUADIANO, DAYLINDA GONZALES, PRECILA GABITAN, ESPERANZA GARCIA, AVELINA GRIEGO, LAUREANO GABITAN, EDUARDO GODOY, ESCA GAHE, SEVERINA GIPAGA, GERARDA GARDUQUE, MONICO GILARDO, FLORENTINO GALINO, NORA GATBONTON, DIONICIA GELLAMERA, BONIFACIO UBAN, SANTIAGO HIBAQUE, CRESTETA HILARIO, JUELY HILARIO, ALFONSO HERMANOS, REMEDIOS HERMIAS, WILMER INABORE, SUSANA ISIDRO, JULIO JACOB, MELY LOBO, GODOFREDO LUSANTA, ROGELIO LUSANTA, PACIFICO LIGO, LUIS LEON, DOMINGO LAO, LEONARDO MARIANO, MATILDE MACALALAG, SEVERINA MANGUERA, CIFREANA MADI, RONCLO MAMING, LEONARDO MUSADA, ANA MARCELO, ESTELITA MERCAIDA, GAVINO MACABENTA, ANGELITA MAMENG, ADELINA MARZAN, ALBINO MELGAR, MARTA MOLAR, PIO MALAQUENO, HONORIO MOCONI, CEZAR NAVARRO, FRANCISCO NAVALES, LETICIA NAVARRO, VITO NAVALES, FELISA OBIERNE, ADORACION OCAMPO, FELISA ORAYANE, PEDRO ONTAYEN, EGRACIA ODTTORAN, CONSTANCIA PILAPIL, APOLONIA PUDASAS, MARINA PAQUET, ADRIANO PORTEZ, MARIA PALLE, DOLORES PARIENTE, EUSTAQUIO PALLE, CARMELITA PELANO, GREGORIA PELANTE, VICITACION PERDEZ, MARIO PASCUAL, AUREA PALMA, LUCILA DE LA PEA, ERIBERTO PORTUGAL, ALFONSA QUIMADA, LIBERTAD RIVERO, TOMAS RENYS, VICENTE RAPORNA, JOSEFINA RUES, CRESENCIO RIVERO, SANTOS RELATA, FLORENCIA REBOSE, LUCIO ROSALIE, EMERITA RESARDE, ELY DEL ROMO, GENEROSO RICARDE, DOUGLAS REYES, CONCEPCION ROSALES, FELOMINA SEPANA, SALVADOR SALAZAR, JOSEFINA SALEBIO, FEDILA SEVERINO, VALENTIN DE LOS SANTOS, EDGARDO SARTORIO, FRANCISCO SOLIDOR, PURIFICACION SONORA, ERLINDA SANEZ, ANICETA SEROY, OFELIA SUFINA, SELVINA SIAPNO, FELOMINA SEDAN, VALENTINA SALIDA, GLORIA SARCILLA, ERLINDA TIBULE, LEONIDES TRIYO, FELIPA TAYCO, ALFREDO TAMBONG, IGNACIO TABOR, JOVITO TABORDA, FLORDELISA TOMBOKON, DEMETRIO VIPINASO, MARIA YERRO, BENITO ELFA, RODOLFO ARELLANO, TEOTIMO ADAY, ROBERTO ADAY, PATRICIA BAUTISTA, PAULINA BOHOL, FELICISIMO BAUTISTA, RODRIGO BANDOY, NATIVIDAD CABAOBAO, GERUNDIO CONAL, ADELA CACHARO, ANGELINA DELFIN, LUCITA DELFIN, JOSE DAINO, HAMPRELIO DOMINGO, VICTORIA ELMEDO, ADELA FRANCISCO, LEON GALOSO, ARSENIO GUELAS, CONCHITA GUERERO, VICENTE HANDOMON, ERNESTO LACINIA, GIL IBIT, RODRIGO MANAHAN, RENATO GONZALO, ANGELA MUPAL, GLORIA MALIHAN, ALFONSO MACALALAD, ALFONSO MONTALLA, JOSEFA MENCOTE, ESTELITA MALIHAN, ASUNCION RAMONS, ALEJANDRO RESURRECCION, AURORA ROEL, DAVID SAMOPEZ, ALEJANDRO SOLIS, JR., PANTALEON ABRANO, FELIPA PASCUAL, VERERO CRISTINA, TERESA VELLAROS, NATIVIDAD ALBINA, MENECIA ARUTA, ROSARIO BUSA, DOLORES BONDOY, ANGELINA BARRIENTOS, SEVERA BANICO, SOFRONIA BACSAL, FELISA BELARMINO, FLORENTINA BANDOY, ANACITA CANOSA, GLECERIA CANDOG, ABADISA COLANGOY, PRIMITIVA CASTILLO, ANACLITA CANIJOS, MARIA DUINOG, GREGORIA DIANAN, CARINA ESQUERA, MARIA FRANCISCO, REMEDIOS FERNANDEZ, LOURDES FEGUEROA, FRANCISCO JIMENEZ, MARIA ESPERAGOZA, DOLORES GALLARDO, MAMERTA LAZARO, MAURECIA LINDAYA, LEONCIA LOPEZ, TERESA LACADANGDANG, LETECIA MAGNO, FELISA PEDRO, CORAZON PABILLARE, TERESA QUINA, NELIA QUIRINO, EMILDA REYES, ROSALICA SALAZAR, MARIETA SOLIDOR, JUAN DELA PEA, MARIA TOLENTINO, VIOLETA TOLIBAS, LEVITAS TOMAS, ELENA TABARNILLO, ADELAIDA TAYCO, SEGUNDINA FACIAL, VIRGINIA VILLA, ERLINDA VELOSO, ISABEL PRESADO, ALICIA VECINAS and VICITACION YAYAFRANCA. The Government Corporate counsel for petitioner. Armando V. Ampil for private respondents. CORTES, J.: In this petition for certiorari, the People's Homesite and Housing Corporation (PHHC) seeks a reversal of the Resolution of the Court of Industrial Relations (CIR) en banc dated February 23, 1970 ordering the PHHC to pay private respondents * wage differentials for work rendered from July 25, 1967 to February, 1968. In 1967, the Philippine government and the World Food program WFP entered into an agreement which provided that xxx xxx xxx Until the efforts of the various Government Agencies concerned have been successful in developing and executing the overall plan for the Sapang Palay resettlement area, substantial employment must be found for the majority of the squatter families at present living there. The People's Homesite and Housing Corporation, hereafter referred to as PHHC is proposing a self-help project to be undertaken by the squatter families for the construction of two earth dams (which will involve the moving of 44,165 cu. meters of earth roads of 850 meters long . . . and 17 kilometers of associate drainage and irrigation channels; at the same time a number of existing roads in the area will be improved by the construction of 42 kilometers of dams and ditches which will involve the removal of 75,600 cu. meters of earth. The undertaking will provide water for the irrigation of more than 100 hectares of land to be used for additional food production, the reservoir will provide non-drinking water for domestic purposes and will be stocked with fish. WFP has been asked to supply the food for a basic ration for the 500 settlers participating in this scheme, and for their 2,000 dependents for a period of 560 days. The food ration will supplement a cash incentive of One Half Peso (0.50) per participant per day. (Exh. "1"). In recruiting participants to the program, application forms entitled WFP Self Help Community Project Information Sheet," (Exh. "2") were issued, mentioning the voluntary nature of the work to be rendered. Although the participants were assigned to work on canals and roads, the projects agreed upon between the PHHC and the World Food Program were never fully implemented. The PHHC ordered the participants to accomplish a time sheet which formed the basis for the payment of P0.50 per day and the weekly food ration. A division chief was also assigned to administer and manage the Sapang Palay project. The agency provided the participants with work tools and equipment such as spades, rakes, shovels, picks and axes. A PHHC employee acted as "work supervisor:" he designated the area to be worked on by the participants pursuant to a predetermined program made by the PHHC; and he also conducted ocular inspection in the area. Complaining about their work and compensation, the participants went to the Department of Labor. After investigation, Secretary Ople sent to the PHHC General Manager the following message: FINDINGS ON WORKERS SAPANG PALAY PROJECT REVEAL VIOLATIONS OF LABOR LAWS STOP SUGGEST LABORERS BE PAID IN ACCORDANCE WITH MINIMUM WAGELAW PHHC thereafter suspended work. And the participants instituted the present action in the Court of Industrial Relations against the PHHC praying for the payment of the difference between the minimum wage (which was P6.00 at that time) and the P0.50 paid to them, overtime compensation, and also for reinstatement. In its answer, PHHC claimed, among others, that it was exercising governmental functions; that it did not employ private respondents herein; and that the CIR had no jurisdiction over PHHC, and over the subject matter of the action. After trial, the Court a quo ruled that since there was no evidence that private respondents rendered overtime work, their claim was reduced to a mere money claim over which the regular courts, not the CIR, had jurisdiction. It thus dismissed the action. On motion for reconsideration, the Court of Industrial Relations en banc reversed the order of dismissal and ordered the PHHC to pay wage differentials to the claimants; but denied the claims for reinstatement and overtime compensation. From that resolution, PHHC brought the case to Us on certiorari, raising the following issues: I WHETHER OR NOT THE CIR HAS JURISDICTION OVER PHHC, A GOVERNMENT OWNED AND/OR CONTROLLED CORPORATION PERFORMING GOVERNMENTAL FUNCTIONS II WHETHER OR NOT (THE) CIR HAS JURISDICTION OVER THOSE CASES WHERE THERE EXIST(S) NO EMPLOYER- EMPLOYEE RELATIONSHIP III WHETHER OR NOT (THE) CIR HAS JURISDICTION OVER CASES FOR MERE MONEY CLAIMS WHERE NO REINSTATEMENT IS SOUGHT IV WHETHER OR NOT THERE EXISTS (AN) EMPLOYER EMPLOYEE (RELATIONSHIP) CONSIDERING THE FACTUAL CIRCUMSTANCES We vote to grant the petition. The jurisdiction of the then Court of Industrial Relations is set forth in Section I of Commonwealth Act No. 103, as amended. Construing this provision of law, We have ruled that the CIR has jurisdiction over labor disputes involving government-owned or controlled corporations performing basically proprietary functions, (GSIS v. Castillo, 98 Phil. 876 [1956]; GSIS v. GSIS Employees Assn., 119 Phil. 524 [1964]; SSS Employees Assn. v. Soriano, 117 Phil. 1038 [1963]) but not those performing governmental functions (University of the Philippines and Anonas v. CIR, 107 Phil. 848 [1960]). It has not always been easy determining which functions are governmental in nature and which are proprietary. The characterization of functions performed by the government has evolved from the traditional "constituent- administrant" classification (as enunciated in the case of Bacani v. National Coconut Corporation (100 Phil. 468 [1956]) to its disavowal in the case of ACCFA v. CUGCO et. al (No. L-221484, November 29, 1969, 30 SCRA 649) where, considering the social justice provision of the 1935 Constitution, We said that the "constituent-ministrant" classification had become unrealistic, if not obsolete. There, We gave our assent to a socio-political philosophy espousing a greater socialization of economic forces. We found nothing objectionable in government undertaking in its sovereign capacity activities which, by the constituent-ministrant test would have been considered as merely optional. We, thus, ruled in said case that the Agricultural Credit Administration, tasked as it was with the implementation of the land reform program of the government was an agency performing governmental functions. Coming now to the case at bar. We note that since 1941 when the National Housing Commission (predecessor of PHHC, which is now known as the National housing Authority [NHA]) was created, the Philippine government has pursued a mass housing and resettlement program to meet the needs of Filipinos for decent housing. The agency tasked with implementing such governmental program was the PHHC. These can be gleaned from the provisions of Commonwealth Act 648, the charter of said agency. We rule that the PHHC is a governmental institution performing governmental functions. This is not the first time We are ruling on the proper characterization of housing as an activity of government, In the 1985 case of National Housing Corporation v. Juco and the NLRC (No. L-64313, January 17, 1985, 134 SCRA 172), We ruled that housing is a governmental function. A perusal of the functions of the PHHC and the NHC indicates that both perform substantially the same functions. Commonwealth Act No. 648, as amended, provides: Section 2. The purposes for which the (People's Homesite and Housing Corporation) is created are: a) The acquisition, development, improvement, construction, leasing and selling of lands and buildings or any interest therein in the cities and populous towns of the Philippines, with the object of providing decent housing for those who may be found unable otherwise to provide themselves therewith; b) The promotion of the physical, social and economic betterment of the inhabitants of the cities and populous towns of the Philippines, by eliminating therefrom slums and dwelling places which are unhygienic or unsanitary and by providing homes at low cost to replace those which may be so eliminated; and, c) The provision of community and institutional housing for destitute individuals and families and for paupers. On the other hand, the articles of incorporation of the NHC provide: SECOND. That the purpose for which the corporation is organized is to assist and carry out the coordinated massive housing program of the government, principally but not limited to low-cost housing with the integration, cooperation and assistance of all governmental agencies concerned, through the carrying on of any or all the following activities: 1) The acquisition, development or reclamation of lands for the purpose of construction and building therein preferably low-cost housing so as to provide decent and durable dwelling for the greatest number of inhabitants in the country; 2) The promotion and development of physical social and economic community growth through the establishment of general physical plans for urban, suburban and metropolitan areas to be characterized by efficient land use patterns; 3) The coordination and implementation of an projects of the government for the establishment of nationwide and massive low-cost housing; 4) The undertaking and conducting of research and technical studies of the development and promotion of construction of houses and buildings of sound standards of design liability, durability, safety, comfort and size for improvement of the architectural and engineering designs and utility of houses and buildings with the utilization of new and) or native materials economics (sic) in material and construction, distribution, assembly and construction and of applying advanced housing and building technology. 5) Construction and installation in these projects of low-cost housing privately or cooperatively owned water and sewerage system or waste disposal facilities, and the formulation of a unified or officially coordinated urban transportation system as a part of a comprehensive development plan in these areas. In the Juco case, We ruled that the NHC, as it was established as an "instrumentality of government to accomplish governmental policies and objectives and extend essential services to the people," performs governmental and not proprietary functions. It thus comes under the jurisdiction of the Civil Service Commission and not the Ministry of Labor and Employment (supra, 134 SCRA 172, 180, 181). We see no reason for departing from that ruling now. The Court of Industrial Relations had no jurisdiction over the dispute involving the PHHC and the private respondents. In view of the foregoing, We deem it unnecessary to pass upon the other issues raised. WHEREFORE, the petition is granted. The assailed resolution of the Court of Industrial Relations is SET ASIDE. Fernan (Chairman), Gutierrez, Jr., Paras, Padilla and Bidin JJ., concur. Footnotes * Private respondents, who number around 700, are settlers in the Sapang Palay resettlement area. The Lawphil Project - Arellano Law Foundation